Use the Following Information to Answer the Question(s)below

question 46

Multiple Choice

Use the following information to answer the question(s) below.
Suppose you purchase a 20-year treasury bond with a 6% annual coupon ten years ago at par.Today the bond's yield to maturity has risen to 8% (EAR) .
-If you hold this bond to maturity,the internal rate of return you will earn on your investment will be closest to:

• A)5.0%.
• B)5.6%.
• C)6.0%.
• D)8.0%.

---

Definitions:

General Adaptation Syndrome

A three-stage process (alarm, resistance, exhaustion) that describes the physiological changes the body goes through under stress.

Resistance Phase

The second stage of the general adaptation syndrome, where the body adapts to a stressor and attempts to return to homeostasis.

Historical Racism

Historical racism refers to the systemic racism that has been embedded in societal structures over time, affecting generations through discriminatory practices and beliefs.

Protective Factor

A characteristic or condition that decreases the likelihood of developing a disease or injury.